General Insurance IPO oversubscribed 1.37 times on last day

The category reserved for qualified institutional buyers (QIBs) was oversubscribed 2.25 times, non institutional investors 22 percent and retail investors 60 percent, merchant banking sources said.  

PTI| Last Updated: Oct 13, 2017, 21:46 PM IST
General Insurance IPO oversubscribed 1.37 times on last day

New Delhi: The Rs 11,370-crore initial public offer (IPO) of state-owned General Insurance Corporation of India was oversubscribed 1.37 times on the last day of bidding today.

GIC Re's IPO received bids for 17,06,99,808 shares against the total issue size of 12,47,00,000 shares, data available with the NSE till 1915 hrs showed.

The category reserved for qualified institutional buyers (QIBs) was oversubscribed 2.25 times, non institutional investors 22 percent and retail investors 60 percent, merchant banking sources said.

Till yesterday the IPO was subscribed 90 percent.

As the issue was fully subscribed, this became the largest public offer floated by a domestic company after the October 2010 offer by Coal India which had raised Rs 15,000 crore.

The reinsurance company has fixed the price band at Rs 855-912 for its IPO.

The issue comprises fresh issue of 1,72,00,000 shares by the corporation and an offer for sale of 10,75,00,000 shares by the promoter.

The company proposes to utilise the proceeds towards augmenting the capital base to support growth of the business and to maintain current solvency levels as also general corporate purposes.

Axis Capital, Citigroup, Deutsche India, HSBC Securities and Kotak Mahindra Capital are the book running lead managers to the offer.

The shares of General Insurance Corporation of India are proposed to be listed on NSE and BSE.